SM Entertainment, South Korea's biggest entertainment agency, will set up an affiliate in Vietnam in a move for further overseas expansion amid the international K-pop boom. CEO Han Se-min announced the plan on Tuesday, saying the branch will be committed to discovering and incubating local musical talent. If the affiliate opens, it will become the Seoul-based agency's fourth overseas entity, after Japan, the United States and China. "With the subsidiary, we will discover and incubate talented Vietnamese, and get them prepared to become local stars and Asian stars, and then global stars," Han said at a business seminar in Hanoi.

Lee Soo-man, founder of SM Entertainment, speaks during a business seminar in Hanoi, Vietnam, Tuesday. Yonhap

SM founder Lee Soo-man attended the meeting. He expressed high hopes for Vietnam, saying his company will "share its future success with Vietnam." SM is South Korea's No.1 entertainment incubator that has produced several K-pop household names such as EXO, Girls' Generation, TVXQ and Super Junior.